A bar business is a lucrative and profitable business venture. The bar business can be as simple or as complex as you like depending on your objectives. First of all; you must really enjoy the business and the people that are part of it. Running a bar pub is not just about the glamour and fun. There are times when you need to knuckle down into real management. At the same time this is not a business that is exclusive to hard men and shady types. There are perfectly good country pubs that hardly need a bouncer. It all depends on the atmosphere that you want to create in your bar business. This article explains how to start a profitable bar business and the bar business plan – PDF, Word & Excel.
To begin with you must conceptualize what constitutes “entertainment” for your target customers. For example, it may not be a good idea to open a loud sports bar in a retiring community yet the people living in that community may still need a pub. Do extensive market research and speak to the community before even thinking of opening up a liquor bar business. You should also pay attention to the local ordinances and rules which govern such establishments so that you do not get into trouble down the road.
Setting up your premises
The bar club requires detail and every single design aspect must communicate a message that is congruent with your overall vision. This includes location, furniture, equipment and entertainment accessories. Given the possibility that you will store large amounts of cash and stock, security is of the paramount importance. That does not just mean installing the stereo typically menacing doorman but also CCTV and precautionary measures. For example, you need to build up alliances with nearby and related businesses so that you can be lookouts for one another. It is not just about setting up security arrangements but also reviewing them from time to time in order to ensure that they remain fit for purpose. Do not forget to ensure that your property is fully insured by a reputable provider. This will protect the assets of your bar business. Ensure the costs of all the required equipment are included in the bar business plan.
Understanding the Competition
Remember that your competitors are not just other bar clubs but the entertainment industry in general. Therefore, if there is a big game happening then you need to have the latest screen showcasing that game live. You can market your bar club as the accessible means to enjoying entertainment without having to confront rowdy crowds. At the same time the location you have may already determine the kind of customers that you are going to have, hence necessarily excluding others. For example, if you set up your bar business near a college campus then you can expect lots of frat and sorority parties. That means that you are hardly going to see any quiet middle class families visiting. This is one of those situations when you have to prioritize your core customers over others through exclusivity and branding.
Capital And Knowledge
The issue that is most likely to lead to a failure of the bar business is the lack of adequate capital. Another cause of failure is less detailed knowledge about the industry as a whole. Wealthy celebrities are able to experiment with this type of business because they can bank on their personal fame to sell even the most substandard product. They also have the money to recover from catastrophic losses. For the ordinary investor, there is no option but to research and invest wisely. The budget can vary depending on the size of the business. You will need a good liquor bar business plan so as to apply for funding for your business.
Staff for the Bar Business
Recruitment, selection and training are critical to the success of your bar business. You need people who are not only experienced in the industry but also have a passion for what you are trying to do. The head bar man/woman will be responsible for ensuring that the front side is running smoothly and that there is no fiddling in the backroom. Do not scrimp and save on high quality staff because the failure to recruit appropriately may lead to significant losses.
If you plan to serve food, then you will need to hire a great cook that can work under pressure and yet produce delicious meals in a friendly environment. One of the mistakes that new bar business owners make is to assume that the clientele is often too drunk to recognize bad service when they experience it. The opposite is true. The typical bar pub customer can be quite picky and less likely to shrug off discourteous behavior from staff. The salary costs of all your employees should be included in the bar business plan.
Do not forget the idea of social capital. At the end of the day, your bar business is something of a community asset. Therefore, you should make every effort to ensure that you are on good terms with your neighbors. Do not allow the premises to become a hub of criminality or antisocial behavior. If you allow that, the local community will come to ostracize the bar club itself. Instead you should present your bar business as a friendly and welcome addition to the community. Your excellent communication skills must filter down to the people that work for you so that you present a great image to the community.
Different kinds of liquor are the principle selling point for bar businesses. However there is much more that they can sell including food, snacks and even live entertainment. The first six months will be the toughest when you are getting to know everybody. The customers will be relatively new to your bar business. However, the typical bar business is able to recover the entirety of the initial investment in less than three years. Try to be proactive and imaginative in the products that you sell. For example, micro-brews are becoming very popular particularly if they are locally made. You can use this as a marketing strategy by becoming a major distributor for amateur and professional brewers in your locality. When the bar business is well established you can convert into a specialist brewer as well; based on your knowledge and expertise. Your liquor bar business plan should include a proper marketing strategy for the business.
Pre-Written Bar Business Plan (PDF, Word And Excel): Comprehensive Version, Short Funding/Bank Loan Version and Automated Financial Statements
For an in-depth analysis of the bar business, we encourage you to purchase our well-researched and comprehensive liquor bar business plan. We introduced the business plans after discovering that many were venturing into the liquor bar business without enough knowledge and understanding of how to run the business, lack of understanding of the financial side of the business, lack of understanding of : the industry, the risks involved , costs and profitability of the business; which often leads to disastrous losses.
The StartupBiz Global bar business plan will make it easier for you to launch and run your bar business successfully, fully knowing what you are going into, and what’s needed to succeed in the business. It will be easier to plan and budget as you will be aware of all the costs involved in setting up and running the liquor bar business.
Uses of the Liquor Bar Business Plan (PDF, Word And Excel)
The bar business plan can be used for many purposes including:
- Raising capital from investors/friends/relatives
- Applying for a bank loan
- Start-up guide to launch your liquor bar business
- As a liquor bar business proposal
- Assessing profitability of the bar business
- Finding a business partner
- Assessing the initial start-up costs so that you know how much to save
- Manual for current business owners to help in business and strategy formulation
Contents of the Bar Business Plan (PDF, Word And Excel)
The bar business plan include, but not limited to:
- Industry Analysis
- Marketing Strategy
- Market Analysis
- Financial Statements (monthly cash flow projections, income statements, cash flow statements, balance sheets, break even analysis, payback period analysis, start-up costs, financial graphs, revenue and expenses, Bank Loan Amortization)
- Risk Analysis
- SWOT & PEST Analysis
- Operational Requirements
- Operational Strategy
- Why some people in the bar business fail, so that you can avoid their mistakes
- Ways to raise capital to start your liquor bar business
The bar business plan package consists of 4 files
- Liquor Bar Business Plan – PDF file (Comprehensive Version – 83 Pages)
- Liquor Bar Business Plan – Editable Word File (Comprehensive Version – 83 Pages)
- Liquor Bar Business Plan Funding/Bank Loan Version- Editable Word File (Short version for applying for a loan/funding – 44 pages)
- Liquor Bar Business Plan Automated Financial Statements – (Editable Excel File)
The business plan can be used in any country and can be easily edited. The financial statements are automated. This implies that you can change eg the percentage markup, salaries etc, and all the other financial statements will automatically adjust to reflect the change.
Click below to download the Contents Page of the Bar Business Plan (PDF)
Get the Liquor Bar Business Plan (PDF, Word And Excel)
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